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A Bill for an Act to establish the Australian Cannabis Agency, and for related purposes
For authoritative information on the progress of bills and on amendments proposed to them, please see the House of Representatives Votes and Proceedings, and the Journals of the Senate as available on the Parliament House website.
Registered 28 Nov 2018
Introduced Senate 27 Nov 2018

2016‑2017‑2018

 

The Parliament of the

Commonwealth of Australia

 

THE SENATE

 

 

 

 

Presented and read a first time

 

 

 

 

 

 

 

Australian Cannabis Agency Bill 2018

 

No.      , 2018

 

(Senator Di Natale)

 

 

 

A Bill for an Act to establish the Australian Cannabis Agency, and for related purposes

  

  

  


Contents

Part 1—Preliminary                                                                                                             1

1............ Short title............................................................................................. 1

2............ Commencement................................................................................... 1

3............ Simplified outline of this Act.............................................................. 2

4............ Act binds the Crown........................................................................... 3

5............ Definitions.......................................................................................... 4

Part 2—Constitutional provisions                                                                                6

6............ Application only within Australian Capital Territory and Northern Territory           6

7............ Exclusion of Territory laws................................................................. 6

8............ Relationship with other Commonwealth laws..................................... 6

Part 3—Australian Cannabis Agency                                                                       7

9............ Establishment of the Australian Cannabis Agency.............................. 7

10.......... Functions of the Cannabis Agency..................................................... 7

11.......... Recreational cannabis price‑setting function........................................ 7

12.......... Powers of the Cannabis Agency......................................................... 8

13.......... Cannabis Agency does not have privileges and immunities of the Crown               8

Part 4—Cannabis Agency Board                                                                                 9

Division 1—Establishment and functions                                                           9

14.......... The Board........................................................................................... 9

15.......... Functions of the Board........................................................................ 9

Division 2—Board members                                                                                   10

16.......... Membership...................................................................................... 10

17.......... Appointment..................................................................................... 10

18.......... Acting appointments......................................................................... 10

19.......... Remuneration.................................................................................... 11

20.......... Leave of absence............................................................................... 12

21.......... Disclosure of interests to the Minister............................................... 12

22.......... Resignation....................................................................................... 12

23.......... Termination of appointment.............................................................. 12

24.......... Other terms and conditions............................................................... 13

Division 3—Meetings of the Board                                                                     14

25.......... Convening meetings.......................................................................... 14

26.......... Presiding at meetings........................................................................ 14

27.......... Quorum............................................................................................. 14

28.......... Voting at meetings............................................................................ 14

29.......... Conduct of meetings......................................................................... 15

30.......... Minutes............................................................................................. 15

31.......... Decisions without meetings.............................................................. 15

32.......... Disclosure of interests to the Board.................................................. 16

Part 5—Cannabis Agency CEO and staff                                                            17

33.......... Chief Executive Officer..................................................................... 17

34.......... Appointment..................................................................................... 17

35.......... Acting appointments......................................................................... 17

36.......... Remuneration.................................................................................... 17

37.......... Other paid work................................................................................ 18

38.......... Leave of absence............................................................................... 18

39.......... Resignation....................................................................................... 18

40.......... Termination of appointment.............................................................. 18

41.......... Staff.................................................................................................. 19

Part 6—Cannabis licences                                                                                              20

Division 1—Cannabis production licence                                                        20

42.......... Application for cannabis production licence...................................... 20

43.......... Cannabis Agency must decide whether to grant cannabis production licence           20

44.......... Cannabis Agency may impose licence conditions............................. 20

45.......... Cannabis production licence subject to conditions............................ 21

46.......... Matters to be specified in a cannabis production licence................... 21

Division 2—Cannabis distribution licence                                                       22

47.......... Application for cannabis distribution licence..................................... 22

48.......... Cannabis Agency must decide whether to grant cannabis distribution licence          22

49.......... Cannabis Agency may impose licence conditions............................. 22

50.......... Cannabis distribution licence subject to conditions........................... 23

51.......... Matters to be specified in a cannabis distribution licence.................. 23

Division 3—Other matters                                                                                       24

52.......... Renewal of cannabis licence.............................................................. 24

53.......... Revocation of cannabis licence.......................................................... 24

54.......... Basis on which cannabis licences granted......................................... 24

Part 7—Offences and civil penalties relating to cannabis                           26

55.......... Physical elements of offences........................................................... 26

56.......... Unlicensed production of recreational cannabis................................ 26

57.......... Unlicensed distribution of recreational cannabis where person possesses 7 or more plants     27

57A....... Unlicensed sale etc. of recreational cannabis where person possesses fewer than 7 plants      28

58.......... Breach of cannabis licence condition................................................. 28

Part 8—Enforcement of civil penalty provisions                                              30

59.......... Appointment of authorised officers................................................... 30

60.......... Monitoring powers........................................................................... 30

61.......... Investigation powers......................................................................... 31

62.......... Civil penalty provisions.................................................................... 32

63.......... Infringement notices.......................................................................... 33

64.......... Injunctions........................................................................................ 34

Part 9—Miscellaneous                                                                                                       35

65.......... Review of decisions by Administrative Appeals Tribunal................ 35

66.......... Rules................................................................................................. 35

67.......... Independent review........................................................................... 35

 


A Bill for an Act to establish the Australian Cannabis Agency, and for related purposes

The Parliament of Australia enacts:

Part 1Preliminary

  

1  Short title

                   This Act is the Australian Cannabis Agency Act 2018.

2  Commencement

             (1)  Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  Sections 1 and 2 and anything in this Act not elsewhere covered by this table

The day after this Act receives the Royal Assent.

 

2.  Sections 3 to 67

The day the Consolidated Revenue Fund is appropriated to fund the Cannabis Agency.

 

Note:          This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

             (2)  Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3  Simplified outline of this Act

This Act regulates the production and distribution of recreational cannabis in the Australian Capital Territory and the Northern Territory.

This Act includes provisions about the application of this Act and its relationship with laws of the Commonwealth, the Australian Capital Territory and the Northern Territory.

This Act establishes the Australian Cannabis Agency, a corporate Commonwealth entity with functions and powers relating to the regulation of recreational cannabis.

The Cannabis Agency is governed by a Board, managed by a CEO and staffed by public servants.

The Cannabis Agency issues cannabis production licences and cannabis distribution licences. A number of conditions are attached to such licences and the Cannabis Agency may impose additional conditions. Cannabis licences are renewable. The Cannabis Agency may revoke a cannabis licence if a licence condition is breached.

The Cannabis Agency acts as the sole recreational cannabis wholesaler. Only the Cannabis Agency may buy recreational cannabis from a production licensee or sell recreational cannabis to a distribution licensee.

This Act creates offences and civil penalties relating to the unlicensed production or distribution of recreational cannabis and the contravention of cannabis licence conditions.

However, an individual may possess 6 or fewer recreational cannabis plants, and an individual in possession of 6 or fewer recreational cannabis plants may distribute recreational cannabis from those plants to other individuals so long as the distribution is free.

A range of compliance and enforcement powers are provided, including by applying the Regulatory Powers Act.

Decisions made under this Act by the Cannabis Agency may be reviewed by the Administrative Appeals Tribunal.

The Minister may make rules for the purposes of this Act.

An independent review of the operation of this Act, and a report of that review, which may include recommendations to the Commonwealth Government, must be completed.

4  Act binds the Crown

                   This Act binds the Crown in each of its capacities.

5  Definitions

                   In this Act:

Board means the Board of the Cannabis Agency established by section 14.

cannabis has the same meaning as in the Narcotic Drugs Act 1967.

Cannabis Agency means the Australian Cannabis Agency established by section 9.

cannabis distribution licence: see section 47.

cannabis licence means:

                     (a)  a cannabis production licence; or

                     (b)  a cannabis distribution licence.

cannabis production licence: see section 42.

CEO means the Chief Executive Officer of the Cannabis Agency.

Chair means the Chair of the Board of the Cannabis Agency.

distribute means:

                     (a)  sell; or

                     (b)  offer for sale; or

                     (c)  otherwise supply (whether or not for consideration).

engage in conduct means:

                     (a)  do an act; or

                     (b)  omit to perform an act.

fixed price period means the period of 2 years beginning on the day that section 11 commences.

medicinal cannabis product has the same meaning as in the Narcotic Drugs Act 1967.

paid work means work for financial gain or reward (whether as an employee, a self‑employed person or otherwise).

produce includes grow.

recreational cannabis means cannabis other than cannabis that is, or is included in, a medicinal cannabis product.

recreational cannabis price‑setting function: see section 11.

Regulatory Powers Act means the Regulatory Powers (Standard Provisions) Act 2014.

statutory wholesale price means the price of recreational cannabis determined by the Cannabis Agency under section 11.

Part 2Constitutional provisions

  

6  Application only within Australian Capital Territory and Northern Territory

                   This Act applies only within the Australian Capital Territory and the Northern Territory.

7  Exclusion of Territory laws

             (1)  It is the intention of the Parliament that this Act is to apply to the exclusion of a law of the Australian Capital Territory or the Northern Territory.

             (2)  In particular, it is the intention of the Parliament that this Act is to apply to the exclusion of a law of the Australian Capital Territory or the Northern Territory relating to:

                     (a)  the production of recreational cannabis; or

                     (b)  the distribution of recreational cannabis; or

                     (c)  the possession of recreational cannabis.

8  Relationship with other Commonwealth laws

             (1)  This Act is not intended to exclude or limit the operation of a Commonwealth law relating to medicinal cannabis that is capable of operating concurrently with this Act.

             (2)  However, it is the intention of the Parliament that this Act is to apply to the exclusion of a law of the Commonwealth relating to:

                     (a)  the production of recreational cannabis; or

                     (b)  the distribution of recreational cannabis; or

                     (c)  the possession of recreational cannabis.

Part 3Australian Cannabis Agency

  

9  Establishment of the Australian Cannabis Agency

             (1)  The Australian Cannabis Agency is established by this section.

             (2)  The Cannabis Agency:

      (a)  is a body corporate; and

      (b)  must have a seal; and

      (c)  may acquire, hold and dispose of real and personal property; and

      (d)  may sue and be sued.

             (3)  The Cannabis Agency’s seal is to be kept in such custody as the Board directs and must not be used except as authorised by the Board.

10  Functions of the Cannabis Agency

                   The Cannabis Agency has the following functions:

                     (a)  to regulate the production of recreational cannabis;

                     (b)  the recreational cannabis price‑setting function;

                     (c)  to regulate the sale of recreational cannabis.

11  Recreational cannabis price‑setting function

             (1)  The recreational cannabis price‑setting function is to determine in writing the price at which the Cannabis Agency may, during the fixed price period:

                     (a)  buy recreational cannabis from the holder of a cannabis production licence; and

                     (b)  sell recreational cannabis to the holder of a cannabis distribution licence.

             (2)  In performing the recreational cannabis price‑setting function, the Cannabis Agency may have regard to:

                     (a)  the street value of recreational cannabis immediately before the start of the fixed price period; and

                     (b)  any other matter the Cannabis Agency considers relevant.

             (3)  A determination made under subsection (1) is not a legislative instrument.

12  Powers of the Cannabis Agency

             (1)  The Cannabis Agency has power to do all things necessary or convenient to be done for or in connection with the performance of its functions.

             (2)  The Cannabis Agency’s powers include, but are not limited to, the following powers:

                     (a)  the power to enter contracts;

                     (b)  during the fixed price period—the power to buy recreational cannabis from the holder of a cannabis production licence at the statutory wholesale price;

                     (c)  during the fixed price period—the power to sell recreational cannabis to the holder of a cannabis distribution licence at the statutory wholesale price;

                     (d)  after the fixed price period—the power to buy recreational cannabis from the holder of a cannabis production licence at a price agreed between the Cannabis Agency and the licensee;

                     (e)  after the fixed price period—the power to sell recreational cannabis to the holder of a cannabis distribution licence at a price agreed between the Cannabis Agency and the licensee;

                      (f)  the power to do anything incidental to the Cannabis Agency’s functions.

13  Cannabis Agency does not have privileges and immunities of the Crown

                   The Cannabis Agency does not have the privileges and immunities of the Crown in right of the Commonwealth.

Part 4Cannabis Agency Board

Division 1Establishment and functions

14  The Board

                   There is to be a Board of the Cannabis Agency.

15  Functions of the Board

             (1)  The functions of the Board are:

                     (a)  to decide strategies and policies to be followed by the Cannabis Agency; and

                     (b)  to ensure the proper, efficient and effective performance of the Cannabis Agency’s functions; and

                     (c)  any other functions conferred on the Board by this Act.

             (2)  The Board has the power to do all things necessary or convenient to be done for or in connection with the performance of its functions.

             (3)  Anything done in the name of, or on behalf of, the Cannabis Agency by the Board, or with the authority of the Board, is taken to have been done by the Cannabis Agency.

Division 2Board members

16  Membership

                   The Board consists of the following members:

                     (a)  a Chair;

                     (b)  at least 8, and no more than 10, other members.

17  Appointment

             (1)  Each Board member is to be appointed by the Minister by written instrument on a part‑time basis.

Note:          A Board member may be reappointed: see section 33AA of the Acts Interpretation Act 1901.

             (2)  A Board member holds office for the period specified in the instrument of appointment. The period must not exceed 5 years.

             (3)  A person is not eligible for appointment as a Board member unless the Minister is satisfied that the appointment of the person would ensure that:

                     (a)  the members of the Board collectively possess an appropriate balance of experience and knowledge in the following fields:

                              (i)  drug‑use harm reduction;

                             (ii)  medicine;

                            (iii)  mental health;

                            (iv)  consumer advocacy;

                             (v)  law enforcement; and

                     (b)  the Board includes a member from each State and Territory.

18  Acting appointments

Chair

             (1)  The Minister may, by written instrument, appoint a person to act as the Chair:

                     (a)  during a vacancy in the office of the Chair (whether or not an appointment has previously been made to the office); or

                     (b)  during any period, or during all periods, when the Chair:

                              (i)  is absent from duty or from Australia; or

                             (ii)  is, for any reason, unable to perform the duties of the office.

Note:          For rules that apply to acting appointments, see sections 33AB and 33A of the Acts Interpretation Act 1901.

Other Board members

             (2)  The Minister may, by written instrument, appoint a person to act as a Board member other than the Chair:

                     (a)  during a vacancy in the office of a Board member other than the Chair (whether or not an appointment has previously been made to the office); or

                     (b)  during any period, or during all periods, when a Board member other than the Chair:

                              (i)  is absent from duty or from Australia; or

                             (ii)  is, for any reason, unable to perform the duties of the office.

Note:          For rules that apply to acting appointments, see sections 33AB and 33A of the Acts Interpretation Act 1901.

Eligibility

             (3)  A person is not eligible for appointment under subsection (1) or (2) unless the person is eligible for appointment as a Board member.

Note:          For eligibility to be appointed as a Board member, see subsection 17(3).

19  Remuneration

             (1)  A Board member is to be paid the remuneration that is determined by the Remuneration Tribunal. If no determination of that remuneration by the Tribunal is in operation, a Board member is to be paid the remuneration that is specified in the rules.

             (2)  A Board member is to be paid the allowances that are specified in the rules.

             (3)  This section has effect subject to the Remuneration Tribunal Act 1973.

20  Leave of absence

Chair

             (1)  The Minister may grant leave of absence to the Chair on the terms and conditions that the Minister determines.

Other Board members

             (2)  The Chair may grant leave of absence to any other Board member on the terms and conditions that the Chair determines.

21  Disclosure of interests to the Minister

                   A Board member must give written notice to the Minister of all interests, pecuniary or otherwise, that the Board member has or acquires and that conflict or could conflict with the proper performance of the Board member’s functions.

22  Resignation

             (1)  A Board member may resign his or her appointment by giving the Minister a written resignation.

             (2)  The resignation takes effect on the day it is received by the Minister or, if a later day is specified in the resignation, on that later day.

23  Termination of appointment

             (1)  The Minister may terminate the appointment of a Board member:

                     (a)  for misbehaviour; or

                     (b)  if the Board member is unable to perform the duties of his or her office because of physical or mental incapacity.

             (2)  The Minister may terminate the appointment of a Board member if:

                     (a)  the Board member:

                              (i)  becomes bankrupt; or

                             (ii)  applies to take the benefit of any law for the relief of bankrupt or insolvent debtors; or

                            (iii)  compounds with his or her creditors; or

                            (iv)  makes an assignment of his or her remuneration for the benefit of his or her creditors; or

                     (b)  the Board member is absent, except on leave of absence, from 3 consecutive meetings of the Board.

24  Other terms and conditions

                   A Board member holds office on the terms and conditions (if any) in relation to matters not covered by this Act that are determined by the Minister.

Division 3Meetings of the Board

25  Convening meetings

             (1)  The Board must hold the meetings that are necessary for the efficient performance of its functions.

             (2)  Meetings are to be held at the times and places that the Board determines.

Note:          See also section 33B of the Acts Interpretation Act 1901, which contains extra rules about meetings by telephone etc.

             (3)  The Chair:

                     (a)  may convene a meeting; and

                     (b)  must convene at least 4 meetings each calendar year; and

                     (c)  must convene a meeting within 30 days of receiving a written request to do so from a majority of the other Board members.

26  Presiding at meetings

             (1)  The Chair must preside at all meetings at which he or she is present.

             (2)  If the Chair is not present at a meeting, the other Board members present must appoint one of themselves to preside.

27  Quorum

                   At a meeting of the Board, a quorum is constituted by:

                     (a)  7 Board members; or

                     (b)  at any time when there are only 9 Board members—5 Board members.

28  Voting at meetings

             (1)  A question arising at a meeting is to be determined by a majority of the votes of the Board members present and voting.

             (2)  The person presiding at a meeting has a deliberative vote and, in the event of an equality of votes, a casting vote.

29  Conduct of meetings

                   The Board may regulate proceedings at its meetings as it considers appropriate.

30  Minutes

                   The Board must keep minutes of its meetings.

31  Decisions without meetings

             (1)  The Board is taken to have made a decision at a meeting if:

                     (a)  without meeting, a majority of the Board members entitled to vote on the proposed decision indicate agreement with the decision; and

                     (b)  that agreement is indicated in accordance with the method determined by the Board under subsection (2); and

                     (c)  all the Board members were informed of the proposed decision, or reasonable efforts were made to inform all the members of the proposed decision.

             (2)  Subsection (1) applies only if the Board:

                     (a)  has determined that it may make decisions of that kind without meeting; and

                     (b)  has determined the method by which Board members are to indicate agreement with proposed decisions.

             (3)  For the purposes of paragraph (1)(a), a Board member is not entitled to vote on a proposed decision if the member would not have been entitled to vote on that proposal if the matter had been considered at a meeting of the Board.

             (4)  The Board must keep a record of decisions made in accordance with this section.

32  Disclosure of interests to the Board

             (1)  A Board Member who has an interest, pecuniary or otherwise, that the Board member has or acquires and that conflicts or could conflict with the proper performance of the Board member’s functions in a matter being considered or about to be considered by the Board must disclose the nature of the interest to a meeting of the Board.

             (2)  The disclosure must be made as soon as possible after the relevant facts have come to the Board member’s knowledge.

             (3)  The disclosure must be recorded in the minutes of the meeting.

             (4)  The Board member:

                     (a)  must not be present during any deliberation by the Board on the matter; and

                     (b)  must not take part in any decision of the Board with respect to the matter.

Part 5Cannabis Agency CEO and staff

  

33  Chief Executive Officer

                   There is to be a Chief Executive Officer of the Cannabis Agency.

34  Appointment

             (1)  The CEO is to be appointed by the Board by written instrument, on a full‑time basis.

Note:          The CEO may be reappointed: see section 33AA of the Acts Interpretation Act 1901.

             (2)  The CEO holds office for the period specified in the instrument of appointment. The period must not exceed 5 years.

             (3)  The CEO must not be a member of the Board.

35  Acting appointments

                   The Board may, by written instrument, appoint a person to act as the CEO:

                     (a)  during a vacancy in the office of CEO (whether or not an appointment has previously been made to the office); or

                     (b)  during any period, or during all periods, when the CEO:

                              (i)  is absent from duty or from Australia; or

                             (ii)  is, for any reason, unable to perform the duties of the office.

Note:          For rules that apply to acting appointments, see sections 33AB and 33A of the Acts Interpretation Act 1901.

36  Remuneration

             (1)  The CEO is to be paid the remuneration that is determined by the Remuneration Tribunal. If no determination of that remuneration by the Tribunal is in operation, the CEO is to be paid the remuneration that is specified in the rules.

             (2)  The CEO is to be paid the allowances that are specified in the rules.

             (3)  This section has effect subject to the Remuneration Tribunal Act 1973.

37  Other paid work

                   The CEO must not engage in paid work outside the duties of his or her office without the Chair’s approval.

38  Leave of absence

             (1)  The CEO has the recreation leave entitlements that are determined by the Remuneration Tribunal.

             (2)  The Chair may grant the CEO leave of absence, other than recreation leave, on the terms and conditions as to remuneration or otherwise that the Chair determines.

39  Resignation

             (1)  The CEO may resign his or her appointment by giving the Chair a written resignation.

             (2)  The resignation takes effect on the day it is received by the Chair or, if a later day is specified in the resignation, on that later day.

40  Termination of appointment

             (1)  The Board may terminate the appointment of the CEO:

                     (a)  for misbehaviour; or

                     (b)  if the CEO is unable to perform the duties of his or her office because of physical or mental incapacity.

             (2)  The Board may terminate the appointment of the CEO if:

                     (a)  the CEO:

                              (i)  becomes bankrupt; or

                             (ii)  applies to take the benefit of any law for the relief of bankrupt or insolvent debtors; or

                            (iii)  compounds with his or her creditors; or

                            (iv)  makes an assignment of his or her remuneration for the benefit of his or her creditors; or

                     (b)  the CEO is absent, except on leave of absence, for 14 consecutive days or for 28 days in any 12 months; or

                     (c)  the CEO engages, except with the Chair’s approval, in paid work outside the duties of his or her office (see section 37); or

                     (d)  the CEO fails, without reasonable excuse, to comply with section 29 of the Public Governance, Performance and Accountability Act 2013 (which deals with the duty to disclose interests) or rules made for the purposes of that section.

41  Staff

             (1)  The staff of the Cannabis Agency must be persons engaged under the Public Service Act 1999.

             (2)  For the purposes of the Public Service Act 1999:

                     (a)  the CEO and the APS employees assisting the CEO together constitute a Statutory Agency; and

                     (b)  the CEO is the Head of that Statutory Agency.

Part 6Cannabis licences

Division 1Cannabis production licence

42  Application for cannabis production licence

             (1)  A person may apply to the Cannabis Agency for a licence (a cannabis production licence) that authorises the production of recreational cannabis.

             (2)  The application must be made in the form approved in writing by the Cannabis Agency.

43  Cannabis Agency must decide whether to grant cannabis production licence

             (1)  On receiving an application under section 42 for a cannabis production licence, the Cannabis Agency must decide:

                     (a)  to grant the applicant a cannabis production licence; or

                     (b)  to refuse to grant the applicant a cannabis production licence.

             (2)  The Cannabis Agency must not grant the applicant a cannabis production licence unless the Cannabis Agency is satisfied that the applicant is a fit and proper person to hold a cannabis production licence.

             (3)  For the purposes of deciding whether to grant, or refuse to grant the applicant a cannabis production licence, the Cannabis Agency may have regard to any matter that the Cannabis Agency considers relevant.

44  Cannabis Agency may impose licence conditions

                   If the Cannabis Agency decides to grant a cannabis production licence, the Cannabis Agency may impose conditions to which the licence is subject.

45  Cannabis production licence subject to conditions

                   Without limiting section 44, a cannabis production licence is subject to the following:

                     (a)  a condition that the licence holder not distribute recreational cannabis produced under the licence otherwise than by way of sale to the Cannabis Agency;

                     (b)  a condition that, upon a request made to the licence holder by the Cannabis Agency, the licence holder permit the Cannabis Agency to inspect the premises at which recreational cannabis is produced under the licence.

46  Matters to be specified in a cannabis production licence

                   A cannabis production licence must specify the following:

                     (a)  the name of the licence holder;

                     (b)  the period for which the licence is in force;

                     (c)  the conditions (if any) imposed by the Cannabis Agency under section 44;

                     (d)  any other matter specified in the rules.

Division 2Cannabis distribution licence

47  Application for cannabis distribution licence

             (1)  A person may apply to the Cannabis Agency for a licence (a cannabis distribution licence) that authorises the distribution of recreational cannabis.

             (2)  The application must be made in the form approved in writing by the Cannabis Agency.

48  Cannabis Agency must decide whether to grant cannabis distribution licence

             (1)  On receiving an application under section 47 for a cannabis distribution licence, the Cannabis Agency must decide:

                     (a)  to grant the applicant a cannabis distribution licence; or

                     (b)  to refuse to grant the applicant a cannabis distribution licence.

             (2)  The Cannabis Agency must not grant the applicant a cannabis distribution licence unless the Cannabis Agency is satisfied that the applicant is a fit and proper person to hold a cannabis distribution licence.

             (3)  For the purposes of deciding whether to grant, or refuse to grant the applicant a cannabis distribution licence, the Cannabis Agency may have regard to any matter that the Cannabis Agency considers relevant.

49  Cannabis Agency may impose licence conditions

                   If the Cannabis Agency decides to grant a cannabis distribution licence, the Cannabis Agency may impose conditions to which the licence is subject.

50  Cannabis distribution licence subject to conditions

                   Without limiting section 49, a cannabis distribution licence is subject to the following:

                     (a)  a condition that the licensee not distribute recreational cannabis to any person under 18 years of age;

                     (b)  a condition that the licensee only distribute recreational cannabis that was sold to the licensee by the Cannabis Agency;

                     (c)  a condition that any recreational cannabis distributed under the licence is contained in plain packaging;

                     (d)  a condition that any recreational cannabis distributed by the licensee is accompanied by information or warnings as required by the Cannabis Agency from time to time;

                     (e)  a condition that any individual who distributes recreational cannabis under the licence has received:

                              (i)  mental health first aid training; and

                             (ii)  training in the responsible distribution of recreational cannabis;

                      (f)  a condition that, upon a request made to the licensee by the Cannabis Agency, the licensee permit the Cannabis Agency to inspect the premises at which recreational cannabis is distributed under the licence.

51  Matters to be specified in a cannabis distribution licence

                   A cannabis distribution licence must specify the following:

                     (a)  the name of the licence holder;

                     (b)  the period for which the licence is in force;

                     (c)  the conditions (if any) imposed by the Cannabis Agency under section 49;

                     (d)  any other matter specified in the rules.

Division 3Other matters

52  Renewal of cannabis licence

             (1)  The holder of a cannabis licence may apply to the Cannabis Agency to renew the licence.

             (2)  An application to renew a cannabis licence must be made before the licence expires.

             (3)  If an application to renew a cannabis licence is made before the licence expires, the application is taken to be an application for a new cannabis licence, and:

                     (a)  if the cannabis licence is a cannabis production licence—Division 1 applies in relation to the application; or

                     (b)  if the cannabis licence is a cannabis distribution licence—Division 2 applies in relation to the application.

53  Revocation of cannabis licence

             (1)  The Cannabis Agency may revoke a cannabis licence if the Cannabis Agency reasonably believes that a condition of the licence has been, or is being, contravened.

             (2)  If the Cannabis Agency revokes a cannabis licence, the Cannabis Agency must give the licensee a written notice stating:

                     (a)  that the licence is to be revoked; and

                     (b)  the reasons for the revocation; and

                     (c)  the date the revocation is to take effect.

54  Basis on which cannabis licences granted

                   A cannabis licence granted under this Part is granted on the basis that:

                     (a)  the licence may be revoked under section 53; and

                     (b)  the licence may be cancelled, revoked, terminated or varied by or under later legislation; and

                     (c)  no compensation is payable if the licence is cancelled, revoked, terminated or varied as mentioned in either of the above paragraphs.

Part 7Offences and civil penalties relating to cannabis

  

55  Physical elements of offences

                   For the purposes of applying Chapter 2 of the Criminal Code to an offence in a section in this Part, the physical elements of the offence are set out in subsection (1) of the section.

Note:          Chapter 2 of the Criminal Code sets out general principles of criminal responsibility.

56  Unlicensed production of recreational cannabis

             (1)  A person contravenes this subsection if:

                     (a)  the person possesses 7 or more recreational cannabis plants; and

                     (b)  the person produces recreational cannabis; and

                     (c)  the person does not hold a cannabis production licence.

Fault‑based offence

             (2)  A person commits an offence if the person contravenes subsection (1).

Note:          See section 55 in relation to the physical elements of the offence.

Penalty:  500 penalty units.

Strict liability offence

             (3)  A person commits an offence of strict liability if the person contravenes subsection (1).

Note:          For strict liability, see section 6.1 of the Criminal Code.

Penalty:  50 penalty units.

Civil penalty provision

             (4)  A person is liable to a civil penalty if the person contravenes subsection (1).

Civil penalty:          500 penalty units.

57  Unlicensed distribution of recreational cannabis where person possesses 7 or more plants

             (1)  A person contravenes this subsection if:

                     (a)  the person possesses 7 or more recreational cannabis plants; and

                     (b)  the person distributes recreational cannabis; and

                     (c)  the person does not hold a cannabis distribution licence.

Fault‑based offence

             (2)  A person commits an offence if the person contravenes subsection (1).

Note:          See section 55 in relation to the physical elements of the offence.

Penalty:  500 penalty units.

Strict liability offence

             (3)  A person commits an offence of strict liability if the person contravenes subsection (1).

Note:          For strict liability, see section 6.1 of the Criminal Code.

Penalty:  50 penalty units.

Civil penalty provision

             (4)  A person is liable to a civil penalty if the person contravenes subsection (1).

Civil penalty:          500 penalty units.

57A  Unlicensed sale etc. of recreational cannabis where person possesses fewer than 7 plants

             (1)  A person contravenes this subsection if:

                     (a)  the person possesses 6 or fewer recreational cannabis plants; and

                     (b)  the person:

                              (i)  sells; or

                             (ii)  offers for sale; or

                            (iii)  otherwise supplies for consideration;

                            recreational cannabis; and

                     (c)  the person does not hold a cannabis distribution licence.

Fault‑based offence

             (2)  A person commits an offence if the person contravenes subsection (1).

Note:          See section 55 in relation to the physical elements of the offence.

Penalty:  500 penalty units.

Strict liability offence

             (3)  A person commits an offence of strict liability if the person contravenes subsection (1).

Note:          For strict liability, see section 6.1 of the Criminal Code.

Penalty:  50 penalty units.

Civil penalty provision

             (4)  A person is liable to a civil penalty if the person contravenes subsection (1).

Civil penalty:          500 penalty units.

58  Breach of cannabis licence condition

             (1)  A person contravenes this subsection if:

                     (a)  the person holds a cannabis licence; and

                     (b)  the licence is subject to a condition; and

                     (c)  the person engages in conduct; and

                     (d)  the conduct breaches the condition.

Fault‑based offence

             (2)  A person commits an offence if the person contravenes subsection (1).

Note:          See section 55 in relation to the physical elements of the offence.

Penalty:  500 penalty units.

Strict liability offence

             (3)  A person commits an offence of strict liability if the person contravenes subsection (1).

Note:          For strict liability, see section 6.1 of the Criminal Code.

Penalty:  50 penalty units.

Civil penalty provision

             (4)  A person is liable to a civil penalty if the person contravenes subsection (1).

Civil penalty:          500 penalty units.

Part 8Enforcement of civil penalty provisions

  

59  Appointment of authorised officers

             (1)  The CEO may, in writing, appoint a member of the staff of the Cannabis Agency as an authorised officer for the purposes of this Part.

             (2)  The CEO must not appoint a person as an authorised officer unless the CEO is satisfied that the person has the knowledge or experience necessary to properly exercise the powers of an authorised officer.

             (3)  An authorised officer must, in exercising powers as such, comply with any directions of the CEO.

             (4)  If a direction is given under subsection (3) in writing, the direction is not a legislative instrument.

60  Monitoring powers

Provisions subject to monitoring

             (1)  This Act is subject to monitoring under Part 2 of the Regulatory Powers Act.

Note:          Part 2 of the Regulatory Powers Act creates a framework for monitoring whether this Act has been complied with. It includes powers of entry and inspection.

Information subject to monitoring

             (2)  Information given in compliance or purported compliance with a provision of this Act is subject to monitoring under Part 2 of the Regulatory Powers Act.

Note:          Part 2 of the Regulatory Powers Act creates a framework for monitoring whether the information is correct. It includes powers of entry and inspection.

Related provisions, authorised applicant, authorised person, issuing officer, relevant chief executive and relevant court

             (3)  For the purposes of Part 2 of the Regulatory Powers Act, as it applies in relation to the provisions of this Act:

                     (b)  an authorised officer is an authorised applicant; and

                     (c)  an authorised officer is an authorised person; and

                     (d)  a magistrate is an issuing officer; and

                     (e)  the CEO is the relevant chief executive; and

                      (f)  the Federal Circuit Court of Australia and the Federal Court of Australia are the relevant courts.

             (4)  The relevant chief executive may, in writing, delegate the powers and functions mentioned in subsection (5) to an authorised person.

             (5)  The powers and functions that may be delegated are:

                     (a)  powers under Part 2 of the Regulatory Powers Act in relation to the provisions of this Act; and

                     (b)  powers and functions under the Regulatory Powers Act that are incidental to a power mentioned in paragraph (a).

             (6)  A person exercising powers or performing functions under a delegation under subsection (4) must comply with any directions of the relevant chief executive.

61  Investigation powers

Provisions subject to investigation

             (1)  A provision is subject to investigation under Part 3 of the Regulatory Powers Act if it is:

                     (a)  a civil penalty provision of this Act; or

                     (b)  an offence against the Crimes Act 1914 or the Criminal Code that relates to this Act.

Note:          Part 3 of the Regulatory Powers Act creates a framework for investigating whether a provision has been contravened. It includes powers of entry, search and seizure.

Related provisions, authorised applicant, authorised person, issuing officer, relevant chief executive and relevant court

             (2)  For the purposes of Part 3 of the Regulatory Powers Act, as it applies in relation to evidential material that relates to a provision mentioned in subsection (1):

                     (a)  the provisions of Part 2 of this Act are related to that evidential material; and

                     (b)  an authorised officer is an authorised applicant; and

                     (c)  an authorised officer is an authorised person; and

                     (d)  a magistrate is an issuing officer; and

                     (e)  the CEO is the relevant chief executive; and

                      (f)  the Federal Circuit Court of Australia and the Federal Court of Australia are the relevant courts.

             (3)  The relevant chief executive may, in writing, delegate the powers and functions mentioned in subsection (4) to an authorised person.

             (4)  The powers and functions that may be delegated are:

                     (a)  powers under Part 3 of the Regulatory Powers Act in relation to evidential material that relates to a provision mentioned in subsection (1); and

                     (b)  powers and functions under the Regulatory Powers Act that are incidental to a power mentioned in paragraph (a).

             (5)  A person exercising powers or performing functions under a delegation under subsection (3) must comply with any directions of the relevant chief executive.

62  Civil penalty provisions

                   Enforceable civil penalty provisions

             (1)  Each civil penalty provision of this Act is enforceable under Part 7 of the Regulatory Powers Act.

Note:          Part 4 of the Regulatory Powers Act allows a civil penalty provision to be enforced by obtaining an order for a person to pay a pecuniary penalty for the contravention of the provision.

Authorised applicant

             (2)  For the purposes of Part 4 of the Regulatory Powers Act, the CEO is an authorised applicant in relation to the civil penalty provisions of this Act.

Relevant court

             (3)  For the purposes of Part 4 of the Regulatory Powers Act, each of the following courts is a relevant court in relation to the civil penalty provisions of this Act:

                     (a)  the Federal Circuit Court of Australia;

                     (b)  the Federal Court of Australia.

63  Infringement notices

Provisions subject to an infringement notice

             (1)  A civil penalty provision of this Act is subject to an infringement notice under Part 5 of the Regulatory Powers Act.

Note:          Part 5 of the Regulatory Powers Act creates a framework for using infringement notices in relation to provisions.

Infringement officer

             (2)  For the purposes of Part 5 of the Regulatory Powers Act, an authorised officer is an infringement officer in relation to the provisions mentioned in subsection (1).

Relevant chief executive

             (3)  For the purposes of Part 5 of the Regulatory Powers Act, the CEO is the relevant chief executive in relation to the provisions mentioned in subsection (1).

             (4)  The relevant chief executive, in writing, delegate the powers and functions mentioned in section 102 of the Regulatory Powers Act to an infringement officer.

             (5)  A person exercising powers or performing functions under a delegation under subsection (4) must comply with any directions of the relevant chief executive.

64  Injunctions

Enforceable provisions

             (1)  The civil penalty provisions of this Act are enforceable under Part 7 of the Regulatory Powers Act.

Note:          Part 7 of the Regulatory Powers Act creates a framework for using injunctions to enforce provisions.

Authorised person

             (2)  For the purposes of Part 7 of the Regulatory Powers Act, the CEO is an authorised person in relation to the provisions mentioned in subsection (1).

Relevant court

             (3)  For the purposes of Part 7 of the Regulatory Powers Act, each of the following courts is a relevant court in relation to the provisions mentioned in subsection (1):

                     (a)  the Federal Circuit Court of Australia;

                     (b)  the Federal Court of Australia.

Consent injunctions

             (4)  A relevant court may grant an injunction under Part 7 of the Regulatory Powers Act in relation to a provision mentioned in subsection (1) by consent of all the parties to proceedings brought under that Part, whether or not the court is satisfied that section 121 of that Act applies.

Part 9Miscellaneous

  

65  Review of decisions by Administrative Appeals Tribunal

             (1)  Applications may be made to the Administrative Appeals Tribunal for review of decisions made by the Cannabis Agency under this Act.

             (2)  In this section:

decision has the same meaning as in the Administrative Appeals Tribunal Act 1975.

66  Rules

             (1)  The Minister may, by legislative instrument, make rules prescribing matters:

                     (a)  required or permitted by this Act to be prescribed by the rules; or

                     (b)  necessary or convenient to be prescribed for carrying out or giving effect to this Act.

             (2)  To avoid doubt, the rules may not do the following:

                     (a)  create an offence or civil penalty;

                     (b)  provide powers of:

                              (i)  arrest or detention; or

                             (ii)  entry, search or seizure;

                     (c)  impose a tax;

                     (d)  set an amount to be appropriated from the Consolidated Revenue Fund under an appropriation in this Act;

                     (e)  directly amend the text of this Act.

67  Independent review

             (1)  The Board must cause an independent review into the operation of this Act and the rules to be completed within 2 years after the commencement of this section.

Public consultation

             (2)  The review must make provision for public consultation.

Report

             (3)  The Board must:

                     (a)  give the Minister a report of the review; and

                     (b)  as soon as practicable after giving the report to the Minister, publish the report on the Cannabis Agency’s website.

             (4)  The Minister must cause copies of the report to be tabled in each House of the Parliament within 15 sitting days of that House after the review is completed.

Recommendations

             (5)  The report may set out recommendations to the Commonwealth Government.

             (6)  If the report sets out one or more recommendations to the Commonwealth Government, the report must set out the reasons for those recommendations.

Government response to recommendations

             (7)  If the report sets out one or more recommendations to the Commonwealth Government:

                     (a)  as soon as practicable after receiving the report, the Minister must cause to be prepared a statement setting out the Commonwealth Government’s response to each of the recommendations; and

                     (b)  within 6 months after receiving the report, the Minister must cause copies of the statement to be tabled in each House of the Parliament.